POWER August 2013 - 18

Concerns of battery discharges to already
range-limited vehicles are being
dealt with. " GIVs will have a controller
that allow the vehicle owner to limit the
amount of battery discharge to ensure they
can meet the range needed for their next
driving event, " says UD. On the flip side,
vehicle owners can generally expect to be
paid between $400 and $5,000 a year, depending
on the energy market, it says.
EIA: Non-Shale Gas
Resources Add
Significantly to
Recoverable Global
Estimates
An updated estimate of technically recoverable
global shale gas resources by the
U.S. Energy Information Administration
(EIA) puts them at 7,299 trillion cubic
feet (tcf)-10% higher than estimated in
2011. The June-released World Shale Gas
Resources: An Initial Assessment of 14 Regions
Outside the United States surveys at
least nine new countries and double the
number basins (95) and formations (137)
and adds about 47% to the 15,583 tcf of
proved and unproven non-shale technically
recoverable natural gas resources
previously estimated (Figure 5). Globally,
32% of the total estimated natural gas resources
are in shale formations, while 10%
of estimated oil resources are in shale or
tight formations, the EIA concludes.
According to the assessment, China
leads the world with an estimated 1,115
tcf of technically recoverable shale gas
resources, followed by Argentina and Algeria.
The U.S. is fourth with 665 tcf,
Canada is fifth with 573 tcf, and Mexico
is sixth with 545 tcf. Expressed interest or
exploration activities have begun in shale
formations in a number of other countries,
including Algeria, Argentina, Australia,
China, India, Mexico, Poland, Romania,
Russia, Saudi Arabia, Turkey, Ukraine, and
the UK, the report says.
Tight oil and shale gas resources have
" revolutionized " U.S. oil and natural gas
production, the EIA notes, providing 29%
of total U.S. crude oil production and
40% of total U.S. natural gas production
in 2012. " However, given the variation
across the world's shale formations in both
geology and above-the-ground conditions,
the extent to which global technically recoverable
shale resources will prove to be
economically recoverable is not yet clear, "
the agency says.
The market effect of shale resources
outside the U.S. is expected to depend on
their own production costs, volumes, and
wellhead prices. " For example, a potential
shale well that costs twice as much and
produces half the output of a typical U.S.
well would be unlikely to back out current
supply sources of oil or natural gas.
In many cases, even significantly smaller
differences in costs, well productivity, or
both can make the difference between a
resource that is a market game changer
and one that is economically irrelevant at
current market prices. "
More work remains to be done, the EIA
says, however, noting that the assessment
does not include prospective shale gas
formations underlying large oil fields in
5. Growing shale oil and gas estimates. In a new assessment, the U.S. Energy
Information Administration (EIA) estimates the world's shale gas resources are 10% higher than
previously thought. This May 2013 map shows the global basins assessed. Red areas represent
basins assessed as having technically recoverable resources while tan areas show basins assessed
that had no recoverable resources. Source: EIA
the Middle East and the Caspian region.
POWER Digest
UN Report on Global Renewable Energy
Investment. The United Nations
Environment Program (UNEP) released
its report Global Trends in Renewable Energy
Investment 2013 on June 11, finding
that renewable energy investment at
the global level was $244 billion in 2012.
However, global investments in renewable
energy fell 12% compared to 2011 due to
dramatically lower solar prices and weakened
U.S. and European markets, the report
notes. An upward trend is also noted
in developing countries. Total renewable
power capacity worldwide exceeded 1,470
GW in 2012, up 8.5% from 2011. Wind
power accounted for about 39% of renewable
power capacity added, followed by
hydropower and solar photovoltaics (PV),
which each accounted for approximately
26%.
In 2012, the world's total solar PV
capacity reached the 100-GW milestone,
surpassing biomass power to become
the third-largest renewable technology
in terms of capacity in operation, after
hydro and wind. Investment in solar
plunged, however, owing to a fall of 30%
to 40% in PV system prices. Lower costs
spurred bigger investment in small-scale
solar, rising from $77 billion in 2011 to
$80 billion in 2012 while spending on
large-scale solar projects of more than 1
MW fell to $52.7 billion.
China alone poured $67 billion into renewables
development, and sharp increases
are noted in South Africa, Morocco,
Mexico, Chile, and Kenya, with the Middle
East and Africa showing the highest regional
growth. Japan's renewable investment
also soared to $16 billion from a
boom in small-scale solar on the back of
its July 2012-implemented feed-in tariff
subsidies. In the U.S., which was the market
leader in 2011, investment fell 34% to
$36 billion on policy uncertainties, while
investment in Italy and Spain was also hit
by concern about future support for the
sector. Germany's overall investment in
renewables slipped 35% to $20 billion,
stemming from the lower solar cost and a
drop in wind power investment.
Canada to Increase Nuclear Liability
Limits. Canada's Ministry of Natural Resources
on June 10 announced the country
would proceed with increasing liability
limits for its nuclear industry " above most
international standards. " The proposed
new legislation that could make nuclear
generators " absolutely and exclusively " li18
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| August 2013

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POWER August 2013

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